The graph above, (feel free to click to enlarge) illustrates a 3 year review of real estate activity for the City of Covington, North of I-12, East of Hwy 190, and West of Hwy 59. Major subdivisions in this area include; Crestwood, Tammany Hills, Arrowwood Estates, Kings Forest, Hollycrest, Southwind, Covington Meadows and more. This graph tracks the number of new, active, and sold homes, as well the average sales price, on a month to month basis, from March 2007 through February 2010.
First, the number of active listings (green) is down about 30 of over 160 homes from 3 years ago. My calculations equate this disparity to an almost 20% reduction in active homes on the market. This is significant because as the inventory of homes decreases, values will level out and begin to rise as demand surpasses supply.
When we look at the average sales price (yellow) over the last 3 years, we definitely see a decline in values. Being of generous mind I would say a little over 10%. I also know the numbers get even more confusing as we get closer to 2010, due to the fact they are all over the place. High and low. This bouncing as we get closer to present day is, I feel, a direct result of the low number of sold homes (blue) we have experienced for the last year to 18 months. Less than 10 sales per month recently. Darn near a 50% reduction from 3 years ago. Due to this low number the abnormal sales (the 80 / 20 rule applies here) are having more of a direct effect and skewing the numbers, making them bounce on our graph. I want to reiterate, less than 10 sales per month. If you are selling, we need to talk.
Lastly the number of new homes for sale (red) coming onto the market each month has decreased over the past 3 years. I like the fact this number is decreasing. Supply and demand again. The fewer the homes, the smaller the inventory, the greater the value, hence demand, of the available supply.
For more information on your home’s current market value, please visit
www.StTammanyHomeEvaluation.com
for a FREE Over-the-Net Home Evaluation.
Thank You
Marc
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